Breaking key levels, the Rand strengthens further...

While the Rand did not gain a lot in terms of value this week, it broke some key levels...

...and this meant that this week was deemed as a very successful one.

Despite:

Economic Worries

Zuma's future being uncertain

Worries surrounding land expropriation

Severe drought in various areas like Cape Town

And many other factors...

...we saw the market push to test the R12/$ - its strongest level in 2.5 years.

Who would have thought?

Let's have a closer look at how it went down...

How It Happened (15-19 January 2018)

On Friday, we released our next forecast which was still looking at the same trend as the previous week - downwards towards the 11.96-11.50 area...it was going to be another interesting week, that was for sure.

How can investors not be nervous when your property could be taken away?!

Onwards to Tuesday - and the big local news being that Asset Forfeiture Unit (AFU) had woken from it's Zuma-induced slumber, and obtained a preservation order against Gupta-linked company Trillian and international consultancy firm McKinsey, with assets to the tune of about R1.6-billion to be seized.

This, together with and some news on Global arena, where it was said that a weakening greenback, favourable global markets, coupled with EUR/USD touching 1.23 made for Rand gains, where given for reasons for the Rand's move stronger.

All we were looking at was how the Rand was moving in line with our forecasts....which it was (albeit a bit slower than anticipated), even touching R12.19 - its best level since June 2015

The Rand's brief dive to a new 32 month low of 12.06 was fairly short-lived, as it it gave half the gains back.

The Rand's run in 2018 has been excellent, but it has been a case of 2 steps forward, once step back.

It is no wonder that persons are warning everyone to be cautious - there is a nervous optimism about - but what is key here is to just keep focused on the charts. Gut-feel and looking at events is not going to cut it!

Overall, the bumpy ride on Friday afternoon meant that we ended off the week almost 20c better off than the past week's close.

Another week closed out, a fairly uneventful one, but at the same time, a very important one...

The Week Ahead (22-26 January 2018)

The Rand's brief dive to a new 32 month low of 12.06 was fairly short-lived, as it it gave half the gains back.

The Rand's run in 2018 has been excellent, but it has been a case of 2 steps forward, once step back.

It is no wonder that persons are warning everyone to be cautious - there is a nervous optimism about - but what is key here is to just keep focused on the charts. Gut-feel and looking at events is not going to cut it!

Overall, the bumpy ride on Friday afternoon meant that we ended off the week almost 20c better off than the past week's close.

Another week closed out, a fairly uneventful one, but at the same time, a very important one...

For us, what happens is immaterial - we will simply be keeping an eye on the patterns of sentiment as they unfold - giving us a much clearer picture of where the Rand is headed than trying to decipher the news....

Why not join us on the inside track - and get an unbiased, objective view of where the market is likely to head the next few days, weeks, months and years.

Testimonials

"An improvement of about 18 cents on the dollar..."

"Thanks once again for the good service.

By using your forecast I was able to convert my US Dollars into Rands at the correct time and got top rate – an improvement of about 18 cents on the dollar. The last lot of money I brought in and I didn't use your forecast. It was stable around 11.30 for a few weeks so decide to bring it in. The day after it shot up to around 12. That wouldn't have happened if I had seen your forecast.

Thanks again"

Rob Wilmot
Cape Town, South Africa

"I saved at least R250,000... obviously one of the best investments of my life."

"You motivated me to transfer my foreign allowance instead of waiting for the rand to strengthen.

I am now very thankful that I did. I saved at least R250,000 by reading the rand exposé and looking at the ZAR/USD forecasts. It was obviously one of the best investments of my life.

Regards,"

Wynand Coetzer
Stellenbosch, South Africa

"If only I had listened to your prediction!!"

"I now see your point of how the markets can completely disregard fundamental events.

I would have thought the ZAR would strengthen ... but instead the market went in the opposite direction, costing me money for the time being.

If only I had listened to your prediction! It seems Elliot accounted for these bizarre movements without reason.

Wondering HOW the market works and WHERE it is going next?

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